Mobile cramming is still on lawmakers’ agenda

Major wireless carriers are touting an agreement with state regulators to end so-called mobile cramming, but key federal agencies and consumer groups caution the fight against such cellphone billing scams isn’t over.

Following negotiations with 45 state attorneys general, AT&T, Sprint and T-Mobile agreed late last month to stop billing cellphone customers for certain kinds of unauthorized charges. The agreement would apply to services like horoscopes and love advice that solicit subscriptions via text message. The state AGs who brokered the deal said it will take a major bite out of the practice that has sparked a backlash from consumers and lawmakers on Capitol Hill. But watchdog groups say the carriers’ move is relatively narrow. It applies only to so-called premium text messaging services and not to the full range of outside charges that can be added to cellphone bills. Since such third-party charges are unfamiliar to many users — and often go unnoticed — the practice leaves people vulnerable to overbilling and fraud, consumer groups say.

(Dec 2)